On Wednesday I looked at three ASX shares that brokers have given buy ratings to this week.
Unfortunately, not all shares are in favour with them right now. Three that have just been given sell ratings are listed below. Here's why these brokers are bearish on them:
Australia and New Zealand Banking Group (ASX: ANZ)
A note out of Morgan Stanley reveals that its analysts have retained their underweight rating and $27.30 price target on this banking giant's shares after APRA decided to make the bank introduce new risk weight floors for farm lending and New Zealand mortgages. This is expected to hit its CET1 ratio by 20 basis points. In addition to this, Morgan Stanley has previously stated that it has concerns with its Australian retail banking earnings which it feels are under pressure. The ANZ share price is up 0.6% to $28.08 today.
Coles Group Ltd (ASX: COL)
Analysts at Credit Suisse have downgraded this supermarket giant's shares to an underperform rating with a $12.04 price target. According to the note, the broker made the move largely on valuation grounds after a solid rise in its share price over the last few months. The broker also warned that Coles and other retailers could fall heavily during earnings season if they fall short of expectations. The Coles share price is trading 1% lower at $14.02 on Thursday.
Northern Star Resources Ltd (ASX: NST)
According to a note out of the Macquarie equities desk, its analysts have downgraded this gold miner's shares to an underperform rating and cut the price target on them to $11.00. The broker made the move following the release of a weak June quarter update which saw lower than expected production and higher than expected costs. And while the broker notes that its guidance for FY 2020 (at the time of release) is yet to be revealed, it doesn't appear to believe that it will change its opinion. The Northern Star share price is down 5% to $12.35 on Thursday.
